Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279319.2 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 10568
Version Description: 
This Version: August 2025
Publisher: 
CESifo GmbH, Munich
Abstract: 
We examine the effect of inter-group competition on within-group violent conflict in Indonesia. Using a triple-differences design, we find that higher competition between villages reduces within-village conflict. These effects persist regardless of the competition's outcome, are stronger in ethnically fractionalized and segregated villages, and are accompanied by higher attendance in village meetings. Our results are consistent with external competition favoring participation and cooperation within otherwise divided communities suggesting that economic incentives to compete with out-groups combined with forms of civic engagement can be important mechanisms to reduce violence within communities.
Subjects: 
community-driven development
competition
conflict
JEL: 
D74
O12
H40
Document Type: 
Working Paper
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2 10419/279319.2 This Version: August 2025
1 10419/279319 Original Version: July 2023

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